A recent report from Citi Research indicates that the Apple iPad could lose ground in market shares to rivals. Glen Yeung (analyst for Citi) sent a note to investors on Wednesday explaining that Apple Inc. (NASDAQ:AAPL) is losing ground fast.
Apple iPad’s shipments down
With recent reports of iPad shipment numbers down and overall tablet shipments expected to rise, it’s no wonder analysts are predicting a dire future for the Apple tablet. Yeung explained, “In light of Apple Inc. (NASDAQ:AAPL)’s flattish revenue guidance…we note that [year-to-year] iPad units will decline -7%.”
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He also shared a potential scenerio for the final quarter in December if Apple Inc. (NASDAQ:AAPL) grew their iPad shipments in the quarter by 75%, which is still just a 6% growth year over year. And it would still be well below the industry growth of 58.7%.
Estimates for the launch of new tablets
That said, Yeung still estimates that we will see the iPad 5 and iPad Mini 2 during the latter half of 2013. However, there was still no mention of the iPad Mini with Retina Display, which is expected to arrive sometime next year.
The tech market is fickle as consumers are always looking for bigger and better gadgets. It’s been awhile since Apple Inc. (NASDAQ:AAPL) released an iPad and there is little doubt that most fans are waiting for the next iPad to arrive. There also seems to be far more interest in the upcoming iPhone 5S and iPhone 6 than their is in the future iPad.
It’s also important to point out that Apple Inc. (NASDAQ:AAPL) has some rivals in the tablet market. Although Amazon.com, Inc. (NASDAQ:AMZN) (which makes the Kindle Fire) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) (which makes the Galaxy Tab) haven’t enjoyed as near as much success in the tablet market as Apple Inc. (NASDAQ:AAPL) has, they are still far cheaper and have some potential of gaining consumer interest. It’s also possible that most consumers are more interested in smartphones in general rather than tablets. Perhaps Apple Inc. (NASDAQ:AAPL) needs to find a way to make their tablet more exciting and different than the iPhone.